Hiromi Yamaji, president of Osaka Exchange Inc., poses during the ceremony for the integration of derivative markets with the Tokyo Stock Exchange, at the bourse’s headquarters in Osaka, Japan on March 24.

Bloomberg News

Japan’s main stock exchange enjoyed a trouble-free integration of its Tokyo and Osaka derivatives operations on Monday as it looks to improve its competitiveness and become Asia’s “chosen” bourse.

The integration comes amid global consolidation of exchanges to enhance competitiveness. The Tokyo Stock Exchange Group and Osaka Securities Exchange merged last year into the Japan Exchange Group and their cash trading operations were unified in July.

Through the integration, the Japan Exchange Group is looking to run Asia’s “most chosen” exchange, according to Hiromi Yamaji, chief executive of the Osaka Exchange–as the new entity for derivatives operations is known.

To achieve that goal, the Tokyo bourse will need more than just higher trading volume and faster execution of trades, he said, pointing to the importance of establishing the exchange’s reputation as a good clearing house with a solid regulatory framework.

“We want to be that kind of exchange,” Mr. Yamaji said.

Currently, the exchange is ranked 14th globally in terms of derivatives trading volume, with 366 million contracts last year based on the combined figures for the two previous entities, according to the Futures Industry Association. Japan still trails far behind South Korea–ranked ninth–and has barely one-tenth of the business of CME Group, the world leader.

The first day of trading showed no signs of any early synergy, though. About 75,000 Nikkei 225 futures contracts were traded on Monday, compared with 93,000 on the previous trading day.

To attract more investors, Mr. Yamaji said his exchange plans to offer a trading fee discount program for new, active investors after successfully courting 10 major hedge funds and high frequency traders in a pilot program launched in August.

To expand its product lineup, the exchange has also started trading futures for India’s Nifty index and plans to offer 20-year Japanese government bond futures from April 7.

Mr. Yamaji said he is considering traveling to Europe and the U.S. in the near future to meet investors so that the exchange can improve its operations by better reflecting their needs.

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